moving pension

pension_seeker

My ex employer has offered me the option of leaving the company pension scheme ( with a small cash incentive). They are winding down and will no longer be in business from Dec '09. I was with them for 15 years so have a bit invested in their pension. Unfortunatley I have missed the deadline to transfer to my new employer (home office). If I want to transfer to my private pension provider apparently I can only do this with 'Financial Advice' which I've been quoted around £1500! Where is the best place for my £30,000. I have 15 years before retirement by the way.
Any suggestions would be extremely welcome.

dunstonh

If I want to transfer to my private pension provider apparently I can only do this with 'Financial Advice' which I've been quoted around £1500!

The transaction you want to do is classed as an occupational pension transfer and these require an IFA to sign off on them before a company will accept it. £1500 seems about right for this type of transaction as its high risk and carries a higher liability and requires a more qualified IFA to sign off on it. You probably could get a little cheaper if you shopped around but you are in the ballpark as far as the fee goes. That said, the product they arrange would be commission free and given your timescale you would recover that in lower charges. Or you could ask them to do commission offset to the fee. In other words agree the fee and they take commission from the provider to that amount.

However, the existing scheme will often provide an option that allows transfer to a default scheme chosen by them. Often they offer a section 32 buy out bond or a personal/stakeholder pension. That wouldnt need you to seek advice although you would have to guess which option is best for you if you didnt.

Where is the best place for my £30,000. I have 15 years before retirement by the way.

There is no one best option that fits all.